Cementir Holding S.p.A. (CEM) AI Stock Analysis

• Market Cap: €2.17B
• Dividend Yield: 1.98%
• Average Volume (3M): 85.59K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.56
• Revenue Growth: -0.43%
• EPS Growth: 0.14%
• Country: IT
• Employees: 3,082
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Construction Materials
• EPS (TTM): 1.30
• Shares Outstanding: 159,120,000
• 10 Day Avg. Volume: 66,636
• 30 Day Avg. Volume: 85,593
• PEG Ratio: 0.56
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €15.60
• Price Target Upside: 12.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ―

Cementir Holding S.p.A. displays strong financial health with noteworthy profitability and efficient cash flow management. Its low leverage and solid equity position minimize financial risks. While the technical analysis shows a positive long-term trend, short-term indicators are less favorable, suggesting caution. Valuation metrics indicate the stock is undervalued, presenting a potential investment opportunity with a reasonable dividend yield. Overall, the stock is attractive for long-term investors but warrants vigilance in the short term.

Positive Factors

Financial Performance

Net cash was better than expected.

Profitability

FY24 preliminary results beat profitability estimates.

Negative Factors

Market Exposure

2025 could be a year of recovery for the group given its higher housing exposure.

Cementir Holding S.p.A. Business Overview & Revenue Model

Company Description

Cementir Holding N.V., together with its subsidiaries, manufactures and distributes grey and white cement, ready-mix concrete, aggregates, and concrete products in Nordic and Baltic, Belgium, North America, Turkiye, Egypt, and Asia Pacific. The company offers white cement under the Aalborg White brand for architectural, aesthetic, and structural applications; grey cement under the FUTURECEM brand; concrete for use in infrastructure, landscaping, industry and agriculture, energy and environment, buildings, and pre-stressed and prefabricated concrete products; and aggregates, such as natural sand, gravel, and crushed stones used in concrete and prefabricated products, asphalt, road foundations and engineering works, draining materials, and agricultural land applications. It also purchases and sells clinker, replacement parts, pet-coke and coal fuels, and other construction materials; and offers shipping and logistics services, procurement management services, assistance and technical support, goods forwarding, and digital solutions. Cementir Holding N.V. was incorporated in 1947 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

Cementir Holding S.p.A. generates revenue primarily through the sale of cement, ready-mix concrete, and aggregates. The company's core revenue streams are derived from its cement production facilities and distribution networks, which supply materials to various construction projects, including infrastructure, residential, and commercial developments. Cementir benefits from its strategic geographical locations and a diversified portfolio of products that cater to different market needs. Additionally, the company engages in partnerships and collaborations with other industry players to enhance its market presence and optimize supply chain efficiencies. Innovations in sustainable building materials also contribute to its revenue by meeting the increasing demand for eco-friendly construction solutions.

Cementir Holding S.p.A. Financial Statement Overview

Summary

Cementir Holding S.p.A. is financially robust with strong profitability, a stable balance sheet, and effective cash flow management. The company has shown consistent growth in revenue and profit margins, supported by low leverage and a strong equity position. The cash flow metrics further underscore its ability to generate cash and sustain operations. Potential risks are minimal given the low debt levels and strong equity base.

Income Statement

Cementir Holding S.p.A. demonstrates strong profitability with a consistent increase in gross and net profit margins. The gross profit margin stands at 58.7%, and the net profit margin is 11.8% for 2024. Revenue growth has been stable with a slight 1.1% increase from the previous year, indicating steady demand. EBIT and EBITDA margins are robust at 46.1% and 23.6%, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.12, suggesting low leverage and financial risk. The equity ratio is healthy at 62.3%, indicating a strong capital structure. Return on Equity (ROE) is commendable at 11.7%, showcasing effective use of shareholder funds to generate profits.

Cash Flow

Cementir Holding S.p.A. shows strong cash flow management with a 11.6% growth in free cash flow, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.7, suggesting strong cash generation from core operations. The free cash flow to net income ratio is 1.07, indicating efficient conversion of profits into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.71B	1.70B	1.72B	1.36B	1.22B
	Gross Profit
1.01B	967.88M	919.68M	817.50M	755.58M
	EBIT
235.79M	751.50M	237.62M	183.34M	151.80M
	EBITDA
439.28M	434.12M	371.68M	290.24M	259.59M
	Net Income Common Stockholders
201.64M	201.36M	162.29M	113.32M	102.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
503.24M	412.39M	355.76M	282.54M	413.56M
	Total Assets
2.76B	2.52B	2.49B	2.11B	2.23B
	Total Debt
183.15M	189.02M	297.01M	315.10M	529.18M
	Net Debt
-302.46M	-223.37M	-58.75M	32.56M	115.61M
	Total Liabilities
899.34M	871.36M	971.20M	883.50M	1.05B
	Stockholders Equity
1.72B	1.50B	1.37B	1.09B	1.06B
Cash Flow		Free Cash Flow
216.26M	193.81M	176.33M	137.30M	175.76M
	Operating Cash Flow
343.90M	300.38M	281.40M	218.98M	234.22M
	Investing Cash Flow
-109.32M	-91.76M	-138.98M	-72.67M	-60.21M
	Financing Cash Flow
-164.20M	-139.01M	-70.27M	-284.40M	-79.53M

Cementir Holding S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CEM, the sentiment is Positive. The current price of 13.9 is below the 20-day moving average (MA) of 14.17, above the 50-day MA of 13.71, and above the 200-day MA of 11.40, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CEM.

Cementir Holding S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEM	76 Outperform	€2.17B	10.72	12.52%	1.98%	-0.43%	0.14%
Sector *	50 Neutral	$1.99B	-1.13	-21.15%	3.69%	2.46%	-30.92%
0N9S		€39.35B	15.49	4.83%	7.56%	―	―